We have very nice follow-through to Friday's strong action. This action is a good example of how you don't need to buy into the teeth of a decline to catch a good trade. There was plenty of time Friday to take positions after the positive news. The anticipatory bulls, who have been buying all the way down, are now back to where they were last Wednesday morning and are probably happy to be cutting losses.
The question is whether this bounce can be built in. There isn't much choice but to take profits if you came into the day with longs, but these bounce can often last longer than you expect as underinvested bulls try to find buys and the bears are squeezed. Usually we don't see a gap like this immediately reverse. There will be quick flips and then another try higher when those left out try to jump in....68 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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